The linearity assumption is:
A) the assumption that the relationship between fixed costs and variable costs can be approximated by a straight line.
B) the assumption that the relationship between fixed costs and variable costs can be approximated by a curved line.
C) realistic in all costing situations.
D) the assumption that total cost depends on activity level.

Question

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The Answer of The linearity assumption is:
A) the assumption that the relationship between fixed costs and variable costs can be approximated by a straight line.
B) the assumption that the relationship between fixed costs and variable costs can be approximated by a curved line.
C) realistic in all costing situations.
D) the assumption that total cost depends on activity level.

The Linearity Assumption Is